A Decrease in the Value of a Currency in Terms

question 128

Multiple Choice

A decrease in the value of a currency in terms of other currencies is known as

• A) an appreciation.
• B) a depreciation.
• C) a par value.
• D) a gold point.

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Definitions:

Average Accounting Return

A measure of the profitability of an investment, calculated as the average net income generated by an investment divided by its initial cost.

Marginal Tax Rate

The rate at which your last dollar of income is taxed, essentially the tax rate that applies to each additional dollar of income.

Start-Up Cost

Expenses incurred before a business begins operating, including costs such as legal fees, marketing, equipment purchases, and rent.

Crossover Rate

The point at which two or more projects have the same net present value or rate of return, used in capital budgeting to compare projects.